NAIVETY AT ITS BEST!!!!

@Wangugi. I like your "back of the envelope" analysis. If it were to turn out that way, I would actually consider it a "good" performance. I think it is rather optimistic and I note your use of the phrase "will at best be flat". Flat for SCOM in the current year would be applauded by many!

kweli safcon is now a cult!!...yaani you are prrepared to set aside your intelligence by beliving what bob says about zain...puhliiiiz! its like believing what charity says about mwangi, lol

The main problem is that data has grown by double and not triple digits....what if the supernormal growth in data tapers off?

People should accept that the days of super profits for safcon are over,plus in the not so distant future,when basic smart phones(e.g huawei) go for 4k people will start using skype-like apps to make phone calls,this in light of the fact that data prices are only bound to fall.

If right now you can get an unlimited data plan of 3,000 in a market of 4 players(not including the ISPs although they can cause compe by establishing hot spots then charging people something small to access it through your phone's wifi),think how much it'll be next year

In short celco's will become ISPs

My advice sell safcom,get out of your comfort zone(nse) look for a startup with a solid plan to make money from the cheap bandwidth and invest there.

Whoooaaa! Missed all the "praise" from @kanda @guru267. Okay some facts:

1. If Zain Kenya had not reduced their price, whatever their ulterior motive, we would not be paying 2/= on Safaricom.

2. Though every man can lie, Bob Collymore knows much more than you and I on performance of Zain.

3. Over 50% of Zain traffic terminates to Safaricom network. This means over 50% of Zain traffic earns them 0.17 per minute, while earning Government 0.62 per min, and earning Safaricom 2.21 per min.

4. It was reported on Reuters/Bloomberg yesterday that Bharti strategy in Africa is now in question as it seems to pursue market share at the cost of overall profit turnaround.


Weighing these 4 facts, I wouldn't be so quick to criticize my citing of Bob Collymore. Which by the way was made in an official Earnings Announcement, and quoted widely in international press.

1) I call all networks. I like the PERMANENT rates from Zain. No confusion! I don't have a Mathematics PHd to figure Safaricom's 'offers'...

2) Also ALL sms are 1/-. safcom has funny deals but 3.50 across networks.

3) I also use the One Network. Very nice. Works great in Uganda + Tanzania. Cheaper than Safaricom Roaming. Free incoming calls!

Dumped my safaricom though there are a few things we should accept in this world of wealth maximization:
1. They've got a strong balance sheet. Their debt to capital ratio is ok as compared to the industry, a healthy cashflow. Business is all in the money.
2. Around the world ICT is driven by innovation. It reaches a point where you not only want to use you phone to call. 7 yrs or 5 yrs ago who would have conteplated browsing or sending money via phone in Kenya if not safcom
A long term investor's jewel

Quite some confusions on this thread. Many against safaricom (as consumers). Many supporting safcom because they are investors (mostly i think because they are stuck in already). On the first group, i doubt whether there are anyone(as consumers) who would not praise zain move, unless they are safconemployees.
so is the discussion about safocn as an investment option or as product provider?

It always comes down to how much you are spending - i use zain most of the time coz atleast i understand the rates- 3 bob for calls and 1/= for sms. simple and clear. i dont care much about who is making profits vs losses.